Construction Industry News
JSW Paints announced its intention to explore opportunities in the booming automotive sector, buoyed by its recent profitability at the operational level. This decision was influenced by the Group's successful venture into the sector.
Earlier, Sajjan Jindal-led JSW Group had announced its entry into the automotive segment through a partnership with MG Motors, a Chinese company owned by SIAC Motor.
JSW acquired a 35 percent stake in the JSW MG Motors India joint venture, with Indian financial institutions, domestic MG Motor dealers and employees holding 8 percent, 3 percent and 5 percent respectively. This new investment entails a capital infusion of Rs 50 billion.
AS Sundaresan, Joint Managing Director and CEO of JSW Paints, stated that while the company is not currently into automotive coating, it plans to venture into it soon. Moreover, its scope will not be limited to serving the interests of the group, but will extend to the entire automotive sector.
In the field of coatings, JSW Paints prioritises the entire industry and strives to develop products aimed at the industrial segment as a whole. Sundaresan highlighted that JSW Paints was the first Indian company to pioneer coil coating technology in the country, setting it apart from competitors who rely on multinational technology to penetrate the Indian market.
In automotive coating, JSW plans to develop its technology internally but remains open to partnerships if they accelerate deployment and capture greater market share.
Well-known players in the Indian automotive paints and coatings sector include Akzo Nobel NV, Berger Paints India, Kansai Nerolac Paints, Nippon Paint (India) and PPG Asian Paints.
According to industry estimates, the Indian automotive paints and coatings market will grow from USD 608 million in 2023 to USD 911 million in 2028, at a compound annual growth rate (CAGR) of 8 percent.
With the new capital, JSW MG Motors aims to triple its production capacity from the current 100,000 to 300,000 vehicles per year. The company plans to launch the Cyberster EV, a premium passenger car, in India early next year.
